PUBLIC WORKS AND UTILITIES COMMITTEE
RESOLVED, that Resolution 08-0124 which authorized city officials to extend the contract with Como Oil and Propane Company through December 31, 2008, is hereby amended (Change #2) to provide for the purchase and delivery of additional liquid propane for the Lakewood water treatment plant in the amount of $37,558.69 plus $2,441.31 sales tax, for a total increase of $40,000 and a new contract total of $295,165.25, terms net 30, FOB destination, and payable from the Water Fund 510, Department/Agency 500, Organization 1955, Object 5390.
STATEMENT OF PURPOSE: This resolution authorizes an increase of $40,000 to the city’s existing contract with Como Oil and Propane Company, payable from the water fund. This is Change #2 to Resolution 08-0124 approved February 11, 2008. Change #1 extended the city’s contract with Como Oil and Propane Company through December 31, 2008.
This action will provide for the purchase and delivery of additional liquid propane to the Lakewood treatment plant. The city expects the conversion to natural gas to happen this summer.
The original bid process took place in October of 2005. Como Oil and Propane Company of Duluth, Minnesota, was the only company to respond. In a letter to the city dated February 1, 2008, Como Oil and Propane agreed to hold the bid constant at $.04 as negotiated for year 2008.